Scale vs. Speed: Why Organizations Slow Down and How to Create Luck

Scale vs. Speed: Why Organizations Slow Down and How to Create Luck

In today's fast-paced business environment, organizations face a common challenge - as they grow and scale, their ability to innovate and move quickly often slows down. This phenomenon can be attributed to several factors, including shifting customer expectations and the need for predictability. In this article, we will explore the reasons behind this slowdown and discuss strategies to create luck and maintain momentum.

As organizations cross the chasm and acquire new customers, their focus shifts from innovation to meeting customer expectations. These customers want promises kept, reliability, and efficiency. They are less interested in constant change and more concerned with having a consistent experience. Therefore, organizations that want to reach a broader audience and make a significant impact must prioritize shipping improvements on a regular schedule and bringing predictability to their offerings.

Refactoring your code from scratch is one strategy to overcome the slowdown that often accompanies scaling. By spinning off the cash cow and assembling a team to start something new from scratch, organizations can inject fresh ideas and energy into their operations. While the new ventures may not immediately succeed, persistence and experience will eventually pay off. It is worth noting that many of the biggest and most successful companies today, such as Apple, Google, Slack, and Instagram, started with just a small team of dedicated individuals.

Now let's shift our focus to the concept of luck and how it can be created. Jason Roberts introduced the idea of "Luck Surface Area," which refers to the active steps one can take to increase the likelihood of positive random events. By doing more things and telling more people about their endeavors, individuals can expand their luck surface area. This approach embodies a growth mindset, where individuals actively seek out opportunities rather than passively waiting for luck to find them.

Naval Ravikant, a renowned entrepreneur and investor, categorizes luck into four types. The first is hope-based luck, where individuals simply wait for luck to find them. The second is hustle-based luck, where individuals work hard and stumble into opportunities. The third is preparation-based luck, where individuals refine their skills and remain sensitive to chances that others might miss. The fourth and most powerful type of luck is becoming the best at what you do. By continuously improving and refining their craft, individuals attract opportunities and make luck their destiny.

To create luck and maintain momentum, here are three actionable pieces of advice:

• 1. Embrace a growth mindset: Adopt the mindset that luck is not solely a matter of chance but can be actively influenced by your actions. Seek out opportunities, take risks, and continuously improve your skills.

• 2. Prioritize consistency and predictability: As your organization scales, ensure that you maintain a focus on delivering consistent and reliable experiences to your customers. This will help you build trust and expand your reach.

• 3. Expand your luck surface area: Do more things and tell more people about your endeavors. By increasing your exposure and actively seeking out opportunities, you can increase the likelihood of positive random events and create luck.

In conclusion, the phenomenon of organizations slowing down as they scale is a common challenge. However, by understanding the changing expectations of customers and prioritizing consistency, organizations can maintain momentum and continue to innovate. Additionally, individuals can actively create luck by adopting a growth mindset, expanding their luck surface area, and continuously improving their skills. By implementing these strategies, organizations and individuals can overcome the barriers to scale and speed and achieve long-term success.